Usually, if one insider buys stock, it might not be a monumental event. However, if multiple insiders are making purchases as in this case, Excite Technology Service Co., Ltd. (ASX:EXT), which sends a positive message to the company's shareholders.
While we never say investors should base their decisions solely on the actions of a company's directors, we believe it would be foolish to ignore insider trading entirely.
Check out our latest analysis for Excite Technology Services.
Insider transactions in Excite Technology Services over the last 12 months
The biggest purchase by an insider in the last twelve months was when insider Carl Chalamboos bought AU$118k worth of shares at a price of AU$0.0057 per share. I would definitely consider buying it, but this purchase was made at a price well below the current price of AU$0.008. This trade suggests that insiders believe the stock is undervalued when the stock price is low, but this trade doesn't say much about what they think about the current price. .
Excite Technology Services insiders may have bought shares in the last year, but they haven't sold any. You can see a visual representation of the insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, click on the chart below.
Excite Technology Services isn't the only company with insiders buying stock.So take a look at this free A list of growing companies with insider buying.
Excite Technology Services Insider recently bought shares
Over the past three months, Excite Technology Services has seen some significant insider buying. Specifically, insider Karl Sharanbooth bought AU$118,000 worth of shares at the time, but the company recorded no sales. Looking at this, I think there are some good things about this business.
Insider ownership
If you are a common shareholder, it may be worth checking how many shares are held by company insiders. We think it's a good sign if insiders own a significant number of shares in the company. Excite Technology Services insiders own around AU$5.6m worth of shares (representing his 50% in the company). Most shareholders would welcome this type of insider ownership because it suggests management incentives are well aligned with other shareholders.
So what do Excite Technology Services' insider transactions tell us?
Recent insider purchases are encouraging. Also, the long history of insider trading gives us confidence. However, we're cautious, noting that the company hasn't made a profit in the last twelve months. Combined with the high insider ownership, these factors suggest that Excite Technology Services insiders are well aligned and likely believe the stock price is too low. Nice! So while these insider transactions can help us form a theory about the stock, it's also worth knowing what risks this company faces.Case in point: we discovered 4 warning signs for Excite Technology Services Three of them are not very compatible with us.
of course, You may find a great investment if you look elsewhere. So take a look at this free List of interesting companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
